FIRST AMENDED AND
RESTATED EMPLOYMENT AGREEMENT
This FIRST AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the " Agreement "), is made and entered into
effective as of October 1, 2005, by and between Waste
Connections, Inc., a Delaware corporation (the " Company "),
and David Eddie (the " Employee ").
The Company and the Employee entered into an Employment
Agreement as of May 15, 2001 (the "Old Agreement"), and by their
execution of this First Amended and Restated Employment Agreement,
the Company and the Employee wish to amend and restate the Old
Agreement in its entirety as provided herein.
NOW, THEREFORE , in consideration of the premises and the
mutual covenants and conditions herein, the Company and the
Employee agree as follows:
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Employment; Acceptance. The Company hereby employs the
Employee and the Employee hereby accepts employment by the Company
on the terms and conditions hereinafter set forth.
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Duties and Powers. The Employee is hereby employed as Vice
President, Corporate Controller and the Employee shall devote
Employee's attention, energies and abilities in that capacity to
the proper oversight and operation of the Company's business, to
the exclusion of any other occupation. As Vice President, Corporate
Controller the Employee shall report to the Chief Financial
Officer, shall be based at the Company's corporate headquarters in
California, and shall be responsible for accounting functions
relating to the Company's operations and properties. The Employee
shall perform such other duties as the Chief Financial Officer, the
Chief Executive Officer, or the Board of Directors (the "
Board ") of the Company may reasonably assign to the
Employee from time to time. The Employee shall devote such time and
attention to his duties as are reasonably necessary to the proper
discharge of his responsibilities hereunder. The Employee agrees to
perform all duties consistent with: (a) policies established from
time to time by the Company; and (b) all applicable legal
requirements.
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Term. The employment of the Employee by the Company pursuant
to this Agreement shall continue until the third (3 rd )
anniversary thereof (the " Term ") or until terminated prior
to such date when and as provided in Section 7. Commencing October
1, 2006, and on each October 1 st thereafter, this
Agreement shall be extended automatically for an additional year,
thus extending the Term to three (3) years from each such date,
unless either party shall have given the other notice of
termination hereof as provided herein.
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Compensation.
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Base Salary. The Company hereby agrees to pay to the
Employee an annual base salary of One Hundred Fifty Thousand
Dollars ($150,000) (" Base Salary "). Such Base Salary shall
be payable in accordance with the Company's normal payroll
practices, and such Base Salary is subject to withholding and
social security, unemployment and other taxes. Increases in Base
Salary shall be considered by the Board.
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Performance Bonus . For the calendar year commencing January
1, 2005, and for each calendar year thereafter , the
Employee shall be eligible to receive an annual cash bonus (the "
Bonus ") based on the Company's attainment of reasonable
financial objectives to be determined annually by the Board. The
maximum annual Bonus will equal thirty-five percent (35%) of the
applicable year's beginning Base Salary and will be payable if the
Board determines, in its sole and exclusive discretion, that that
year's financial objectives have been fully met. The Bonus shall be
paid in accordance with the Company's bonus plan, as approved by
the Board.
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Grants of Options and Restricted Stock . Employee shall be
entitled to participate in Stock Option, Restricted Stock,
Restricted Stock Unit ("RSU") and other equity incentive plans
presently in effect or in effect from time to time in the future on
such terms and to such level of participation as the Board or the
Compensation Committee of the Board shall determine to be
appropriate, bearing in mind the Employee's position and
responsibilities.
The terms of any Options, Restricted
Stock, RSUs and other equity incentives shall be governed by the
relevant plans under which they are issued and described in detail
in applicable agreements between the Company and the Employee.
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Other Benefits. The Company shall provide the Employee with
a cellular telephone and will pay or reimburse the Employee's
monthly service fee and costs of calls attributable to Company
business. The Employee shall be entitled to paid annual vacation,
which shall accrue on the same basis as for other employees of the
Company of similar rank, but which shall in no event be less than
three (3) weeks for any twelve (12) month period commencing
May 15 th of each year. The Employee also shall be
entitled to participate, on the same terms as other employees of
the Company participate, in any medical, dental or other health
plan, pension plan, profit-sharing plan and life insurance plan
that the Company may adopt or maintain, any of which may be
changed, terminated or eliminated by the Company at any time in its
exclusive discretion.
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Confidentiality . During the Term of his employment, and at
all times thereafter, the Employee shall not, without the prior
written consent of the Company, divulge to any third party or use
for his own benefit or the benefit of any third party or for any
purpose other than the exclusive benefit of the Company, any
confidential or proprietary business or technical information
revealed, obtained or developed in the course of his employment
with the Company and which is otherwise the property of the Company
or any of its affiliated corporations, including, but not limited
to, trade secrets, customer lists, formulae and processes of
manufacture; provided, however, that nothing herein contained shall
restrict the Employee's ability to make such disclosures during the
course of his employment as may be necessary or appropriate to the
effective and efficient discharge of his duties to the
Company.
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Property. Both during the Term of his employment and
thereafter, the Employee shall not remove from the Company's
offices or premises any Company documents, records, notebooks,
files, correspondence, reports, memoranda and similar materials or
property of any kind unless necessary in accordance with the duties
and responsibilities of his employment. In the event that any such
material or property is removed, it shall be returned to its proper
file or place of safekeeping as promptly as possible. The Employee
shall not make, retain, remove or distribute any copies, or divulge
to any third person the nature or contents of any of the foregoing
or of any other oral or written information to which he may have
access, except as disclosure shall be necessary in the performance
of his assigned duties. On the termination of his employment with
the Company, the Employee shall leave with or return to the Company
all originals and copies of the foregoing then in his possession or
subject to his control, whether prepared by the Employee or by
others.
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Termination.
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For Cause. The Company, by action of the Board, may
terminate this Agreement and the Employee's employment for cause on
delivery to the Employee of a Notice of Termination (as defined in
Section 9.2 below). For purposes of this agreement, the term "
Cause " shall mean:
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a material breach by the Employee of any of the terms of this
Agreement that is not immediately corrected following written
notice of default specifying such breach;
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conviction of a felony;
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a breach of any of the provisions of Section 11 below;
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repeated intoxification with alcohol or drugs while on Company
premises during its regular business hours to such a degree that,
in the reasonable judgment of the other managers of the Company,
the Employee is abusive or incapable of performing his duties and
responsibilities under this Agreement; and
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misappropriation of property belonging to the Company and/or any of
its affiliates.
On such termination for cause, the Employee shall be entitled only
to the Employee's Base Salary through the date of such termination,
and shall not be entitled to any other compensation, including,
without limitation, any severance compensation. Without limitation
of the foregoing, on termination pursuant to this Section 7.1, the
Employee shall forfeit: (i) his Bonus under Section 4.2 for
the year in which such termination occurs; and (ii) all outstanding
but unvested options and rights relating to capital stock of the
Company, and all RSUs and shares of the Company's restricted stock
issued to the Employee that as of the termination date are still
unvested and subject to restrictions on transfer.
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Without Cause. The employment of the Employee may be
terminated without Cause at any time by the Company on delivery to
the Employee of a written Notice of Termination (as defined in
Section 9.1). On the Date of Termination (as defined in
Section 9.2) pursuant to this Section 7.2, the Company shall,
in lieu of any payments under Section 4.1 and 4.2 for the remainder
of the Term, pay to the Employee an amount equal to the lesser of:
(a) the Employee's Base Salary for a period of one (1) year from
the date of termination, and (b) the Employee's Base Salary for the
remainder of the Term. In addition, the Employee shall be entitled
to the pro-rated maximum Bonus available to the Employee under
Section 4.2 for the year in which the termination occurs. Such
payment by the Company shall be paid in accordance with the
Company's normal payroll practices and not as a lump sum payment.
In addition, the Company will pay as incurred the Employee's
expenses, up to Fifteen Thousand Dollars ($15,000), associated with
career counseling and resume development. The Company shall also
pay to the Employee an amount equal to the Company's portion (but
not the Employee's portion) of the cost of medical insurance at the
rate in effect on the Date of Termination for a period of one (1)
year from the Date of Termination. In addition, on termination of
the Employee under this Section 7.2, all of the Employee's
outstanding but unvested options and rights relating to capital
stock of the Company shall immediately vest and become exercisable,
and all RSUs and shares of the Company's restricted stock issued to
the Employee shall immediately vest and become unrestricted and
freely transferable. The term of any such options and rights shall
be extended to the first (1 st ) anniversary of the
Employee's termination. The Employee acknowledges that extending
the term of any incentive stock options pursuant to this Section
7.2 or Sections 7.3, 7.4 or 8.1 below, could cause such option to
lose its tax-qualified status if it is an incentive stock option
under the Code and agrees that the Company shall have no obligation
to compensate the Employee for any additional taxes he incurs as a
result.
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Termination on Disability . If during the Term the Employee
should fail to perform his duties hereunder on account of physical
or mental illness or other incapacity which the Company shall in
good faith determine renders the Employee incapable of performing
his duties hereunder, and such illness or other incapacity shall
continue for a period of more than six (6) consecutive months ("
Disability "), the Company shall have the right, on written
Notice of Termination delivered to the Employee to terminate the
Employee's employment under this Agreement. During the period that
the Employee shall have been incapacitated due to physical or
mental illness, the Employee shall continue to receive the full
Base Salary provided for in Section 4.1 hereof at the rate then in
effect until the Date of Termination pursuant to this Section 7.3.
On the Date of Termination pursuant to this Section 7.3, the
Company shall pay to the Employee the payments and other benefits
applicable to termination without Cause set forth in Section 7.2
hereof, other than those related to career counseling and resume
development. The Company shall also pay, on behalf of the Employee,
an amount equal to the Company's portion (not the Employee's
portion) of the cost of medical insurance at the rate in effect on
the Date of Termination for a period of one (1) year from the Date
of Termination. In addition, on such termination, all of the
Employee's outstanding but unvested options and rights relating to
capital stock of the Company shall immediately vest and become
exercisable, and all RSUs and shares of the Company's restricted
stock issued to the Employee shall immediately vest and become
unrestricted a
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